The UK economy is showing signs of stabilization, a closely watched report indicated Tuesday.

The National Institute of Economic and Social Research said the British economy contracted 1.5% in the three months to April compared with a fall of 1.9% during the three months to March.

The economic think tank said this improvement suggests that fall in the output since the start of the recession will not be as sharp as in 1929 recession, but is still greater than the 1979 recession.

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